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Lets break it down.
Here are five ways credit cards make you spend more money than other payment methods.
Your bank balance isnt even reducing.
This delay numbs the sense of financial loss, making it easier to spend.
The focus becomes the product youre buying rather than the price youre paying for it.
Sloan School Of Managementprofessor, Drazen Prelec.
When it comes to spending, credit cards encourage individuals to step on the gas.
This can produce a sense of gamification.
As users enjoy trying to optimize their points and win with their credit cards.
What you think you ended up saving really ended up costing you, said Delgado.
Convenience Encourages Impulse Spending
Swiping or tapping a card is effortless, almost mindless, said Kibbel.
Youre more easily falling victim to temptation.
This can be particularly exploitative for those who suffer frompoor impulse control.
Illusion is a powerful tool.
Sometimes it can override reality.
Since you might buy what you want when you want it.
No asking for handouts or waiting for payday.
Yet, its this desire for freedom that keeps many enslaved tocredit card companiesfor the long haul.
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